Bitcoin

FTX and Alameda Research have been approved to repay $12.7 billion to creditors. The Commodity Futures Trading Commission (CFTC) waived civil monetary penalties to ensure the full repayment amount. Additionally, both FTX and Alameda are permanently banned from trading digital asset commodities.In a major update to the FTX bankruptcy case, New York Judge P. Kevin Castel has <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.590934/gov.uscourts.nysd.590934.44.0.pdf" rel="noopener noreferrer nofollow">approved a consent order</a> that requires FTX and its sister company, Alameda Research, to pay $12.7 billion to defrauded investors. This decision wraps up a 20-month lawsuit by the Commodity <a href="https://cryptosheadlines.com/binance-introduces-20x-leverage-for-trading-futures-of-this-altcoin/" rel="noopener noreferrer nofollow">Futures Trading</a> Commission (CFTC) that was sparked by FTX’s collapse during the 2022 crypto winter.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/625a0491c83c43f8ada2a2c1100491c7.png" /><h3 id="ftx-and-alameda-research-settlement-details">FTX and Alameda Research Settlement Details</h3>The Commodity Futures Trading Commission (CFTC) took legal action against FTX and Alameda Research, accusing them of fraud and misrepresentation. On July 12, both companies <a href="https://cryptosheadlines.com/ftx-and-genesis-reach-agreement-in-bankruptcy-dispute/" rel="noopener noreferrer nofollow">reached a settlement agreement</a>, which was officially approved by the court on August 7. The CFTC chose to forgo civil monetary penalties, directing the entire $12.7 billion settlement towards repaying FTX’s creditors.Under the settlement, FTX and Alameda are required to pay $8.7 billion in restitution and an additional $4 billion in disgorgement. The court order also imposes a permanent ban on both companies from trading digital asset commodities and acting as intermediaries in such transactions. They are further prohibited from engaging in any unauthorized financial activities.The settlement funds will be distributed through the ongoing FTX bankruptcy proceedings. This process will be overseen by either the <a href="https://cryptosheadlines.com/ftx-ceo-john-ray-initiates-relaunch-of-main-crypto-exchange/" rel="noopener noreferrer nofollow">FTX CEO</a> or a court-approved plan administrator, with regular reports on the disbursement provided to the CFTC to ensure compliance with the court’s directives.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/8e6fee9f6ecf43ccbead43cd4bbb9ffe.png" /><h3 id="impact-of-ftx-settlement-on-the-crypto-market">Impact of FTX Settlement on the Crypto Market</h3>The recent settlement involving FTX and Alameda Research represents a crucial step in addressing the aftermath of FTX’s 2022 collapse. Once a <a href="https://cryptosheadlines.com/mog-coin-mog-listed-on-major-cryptocurrency-exchange/" rel="noopener noreferrer nofollow">major entity in the cryptocurrency</a> sector, FTX’s bankruptcy wiped out billions of dollars in investor value.<a href="https://cryptosheadlines.com/kamala-harris-launches-crypto-for-harris-to-win-over-crypto-owners/" rel="noopener noreferrer nofollow">Also Read: Kamala Harris Launches &#39;Crypto for Harris&#39; to Win Over Crypto Owners</a>The process of liquidating FTX’s assets to fulfill the $12.7 billion settlement might affect the broader crypto market. Similar to the Mt. Gox compensation process, large-scale asset sales could exert downward pressure on prices. Additionally, the precedent set by this case may influence how future cryptocurrency bankruptcies are managed, potentially leading to more cautious valuation and investment practices in the industry.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/bc67b3f0cb0a4801aa5e5c45d11a17b7.png" />Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/625a0491c83c43f8ada2a2c1100491c7.png" />Join Cryptos Headlines <a href="https://linktr.ee/cryptosheadlines.com" rel="noopener noreferrer nofollow">Community</a>Follow Cryptos Headlines on <a href="https://news.google.com/publications/CAAqBwgKMLz3-wowvuzoAg" rel="noopener noreferrer nofollow">Google News</a>Join our official TG Channel: <a href="https://t.me/CryptosHeadlines" rel="noopener noreferrer nofollow">https://t.me/CryptosHeadlines</a>

FTX Settles CFTC Lawsuit with $12.7 Billion Payout

Table of Contents

CryptosHeadlines.com

Other articles published on Aug 8, 2024

Japan’s Financial Regulator Urges Caution on Spot Crypto ETFs

MicroStrategy Stock Down 90% in 24 Hours, Here's Why

Innovative Crypto Strategies: Aptos Network Growth and the Best Crypto Presale in August 2024

Meme coins spark crypto recovery as Solana gains

MEET48 is about to Launch the First No-Click Idol Training & Management Game on TON, Coin Idols, ...

Nubit and Succinct launch Nuport to Improve Blockchain Interoperability

Join our free newsletter for daily crypto updates!